Financial standing of The Trigav Group

As at the reporting date, balance sheet total increased by 6% compared to the 2013 year-end, whilst total equity capital rose by 17%.

Financial assets went up by 8%.

Equity and liabilities

Equity and liabilities

The total equity capital as at the 2014 year-end was EUR 688.1 million or 17% more than in 2013. The share of equity in total liabilities
increased by 1.8 percentage points, from 19.2% to 21.0%. Equity attributable to the controlling company amounted to EUR 681.4 million, while
non-controlling interest holders had EUR 6.7 million. Share capital, divided into 22,735,148 ordinary shares, remained at the 2013 year-end level and
totalled EUR 73.7 million.

As a result of an increase in the value of available-for-sale financial assets, fair value reserve increased by 113% to EUR 94.9 million. Share premium remained approximately at the same level as the year before (index 100), reaching EUR 56.9 million.

Reserves from profit
amounting to EUR 299.7 million include legal and statutory reserves of EUR 20.0 million, credit risk equalisation reserves of EUR 32.4 million, contingency
reserves of EUR 0.6 million and other reserves from profit of EUR 246.7 million. The latter increased by EUR 22.5 million over 2013 and stood at EUR 246.7
million.

As at 31 December 2014, accumulated profits for the year grew by 17% to EUR 159.5 million nominally, including net profit for the year and
net profit brought forward of EUR 96.7 million (index 107). Net profit brought forward decreased by EUR 38.6 million due to the payment of dividends and
increased by EUR 46.2 million as a result of transferring the net profit of the preceding year. Net profit for the year disclosed in the balance sheet
totalled EUR 62.8 million, which was EUR 22.5 million less than net profit disclosed in the income statement, as the Company in compliance with the
Companies Act used part of the net profit to form other reserves from profit. According to the Companies Act, the Management Board of Zavarovalnica Triglav
may allocate net profit to other reserves, however only up to one half of the net profit remaining after statutory allocations.

As at the reporting date, subordinated liabilities were 1% lower than in the previous year, accounting for 0.9% of total liabilities or
EUR 28.1 million in nominal terms.

On the liabilities side, gross insurance technical provisions rose by 3% to EUR 2,333.7 million. In total liabilities, their share
decreased by 2.2 percentage points, from 73.5% to 71.2%. Mathematical provisions increased by 8% and amounted to EUR 1,413.0 million. Provisions for gross
unearned premiums and gross claims provisions shrunk by 5% and by 4% respectively. Other insurance technical provisions grew by 12%. Insurance technical
provisions are discussed in greater detail under Section Insurance technical provisions.

Financial liabilities
accounted for 0.5% of total liabilities as at the 2014 year-end. They totalled EUR 15.1 million or 57% less compared to 2013.

Operating liabilities
as at 31 December 2014 totalled EUR 58.5 million or 4% above the figure reported one year earlier. They accounted for 1.8% of total liabilities.
Liabilities from direct insurance operations declined by 23% and equalled EUR 15.6 million. Liabilities from co-insurance and reinsurance operations
increased by 3% to EUR 36.3 million. Current tax liabilities equalled EUR 6.5 million (EUR 739 thousand as at 31 December 2013).

Employee benefits
totalled EUR 12.3 million (index 108), whilst other provisions amounted to EUR 3.9 thousand (index 24). Deferred tax liabilities amounted to EUR 30.8 million (index 167), which was mainly due to the large increase in unrealised surplus from
financial investments.

As at 31 December 2014, other liabilities increased by 10% and stood at EUR 65.6 million, representing a 2.0% share of total liabilities.

Liabilities arising from non-current assets held for sale
were formed in the amount of EUR 39.3 million.

Assets

Assets

Financial assets
as at the 2014 year-end totalled EUR 2,619.4 million and were 8% above the figure reported one year earlier. Their share accounted for 80.0% of total
assets (an increase of 0.9 percentage point). Unit-linked insurance assets amounted to EUR 465.8 million and financial investments to EUR 2,153.6 million. In total financial investments, EUR 130.0 million was accounted for by deposits and loans,
EUR 210.6 million by investments held to maturity, EUR 204.3 million by investments recognised at fair value through profit/loss and EUR 1,608.7 million by
investments available for sale, accounting for the bulk of total financial investments. The structure of financial assets is discussed in greater detail
under Section Structure of financial investments.

The Triglav Group’s financial investments in associates
rose by 2%, totalling EUR 10.4 million and maintained its 0.3% share of total assets.

Investment property
rose by 8% and totalled EUR 104.9 million (see Section Structure of financial investments). They accounted for 3.2% of total assets.

Receivables
as at 31 December 2014 were 7% lower compared to the 2013 year-end and equalled EUR 181.8 million. They accounted for 5.6% of total assets. Receivables
from direct insurance operations amounted to EUR 86.4 million (index 90), receivables from co-insurance and reinsurance operations totalled EUR 41.5
million (index 96), other receivables equalled EUR 52.1 million (index 123) and current tax receivables EUR 1.8 million (2013: EUR 14.7 million).

The insurance technical provisions transferred to reinsurance contracts stood at EUR71.1 million, having increased by
10% compared to 31 December 2013. Assets from reinsurance contracts from claim provisions totalled EUR 55.6 million (index 112), while those from unearned
premiums equalled EUR 15.5 million (index 102).

Non-current assets held for sale
equalled EUR 40.6 million (2013: EUR 2.1 million). Since the subsidiary Triglav Pojišt'ovna, Brno, is in the process of selling, all assets and liabilities
of that company were in accordance with accounting standards categorised as non-current assets held for sale and disclosed as separate items in the
statement of financial position.

Balance sheet as at 31 December 2014 – according to IFRS

Balance sheet as at 31 December 2014 – according to IFRS

in EUR

31 December 2014

31 December 2013

Index

2014 Structure

2013 Structure

ASSETS

3,275,428,004

3,077,107,344

106

100.0%

100.0%

Intangible assets

71,770,468

71,724,243

100

2.2%

2.3%

Property, plant and equipment

123,668,545

122,850,884

101

3.8%

4.0%

Deferred tax receivables

20,472,194

23,696,799

86

0.6%

0.8%

Investment property

104,861,479

97,245,384

108

3.2%

3.2%

Investments in associates

10,371,335

10,204,674

102

0.3%

0.3%

Financial assets

2,619,376,329

2,432,183,379

108

80.0%

79.0%

Financial investments:

2,153,588,590

1,994,515,763

108

65.7%

64.8%

- loans and deposits

130,037,423

199,264,326

65

4.0%

6.5%

- held to maturity

210,604,128

224,880,951

94

6.4%

7.3%

- available for sale

1,608,664,995

1,431,023,178

112

49.1%

46.5%

- recognised at fair value through profit and loss

204,282,044

139,347,308

147

6.2%

4.5%

Unit-linked insurance assets

465,787,739

437,667,616

106

14.2%

14.2%

Reinsurers’ share of technical provisions

71,147,717

64,707,528

110

2.2%

2.1%

Assets from financial contracts

0

0

0.0%

0.0%

Receivables

181,810,510

196,328,781

93

5.6%

6.4%

- receivables from direct insurance operations

86,414,518

95,959,929

90

2.6%

3.1%

- receivables from reinsurance and co-insurance operations

41,461,923

43,322,539

96

1.3%

1.4%

- current tax receivables

1,819,015

14,724,095

12

0.1%

0.5%

- other receivables

52,115,054

42,322,218

123

1.6%

1.4%

Other assets

8,469,465

26,973,765

31

0.3%

0.9%

Cash and cash equivalents

22,858,388

29,068,558

79

0.7%

0.9%

Non-current assets held for sale

40,621,574

2,123,349

1.2%

0.1%

EQUITY AND LIABILITIES

3,275,428,004

3,077,107,344

106

100.0%

100.0%

Equity

688,140,772

590,537,457

117

21.0%

19.2%

Controlling interests

681,412,162

584,314,877

117

20.8%

19.0%

- share capital

73,701,392

73,701,392

100

2.3%

2.4%

- share premium

56,908,216

56,866,194

100

1.7%

1.8%

- reserves from profit

299,731,040

276,678,464

108

9.2%

9.0%

- treasury share reserves

452,880

452,880

100

0.0%

0.0%

- treasury shares

-452,880

-452,880

100

0.0%

0.0%

- fair value reserve

94,940,028

44,605,435

213

2.9%

1.4%

- net profit brought forward

96,705,983

90,083,115

107

3.0%

2.9%

- net profit for the year

62,769,801

46,213,507

136

1.9%

1.5%

- currency translation differences

-4,558,557

-3,833,230

119

-0.1%

-0.1%

- reserve of disposal group held for sale

1,214,258

0

0.0%

0.0%

Non-controlling interests

6,728,610

6,222,580

108

0.2%

0.2%

Subordinated liabilities

28,065,416

28,244,484

99

0.9%

0.9%

Insurance technical provisions

1,874,756,014

1,826,231,310

103

57.2%

59.3%

- unearned premiums

245,995,733

258,066,669

95

7.5%

8.4%

- mathematical provisions

954,072,939

870,733,006

110

29.1%

28.3%

- claims provisions

648,827,459

674,436,244

96

19.8%

21.9%

- other insurance technical provisions

25,859,883

22,995,391

112

0.8%

0.7%

Insurance technical provisions for unit-linked insurance contracts

458,899,160

435,201,724

105

14.0%

14.1%

Employee benefits

12,265,582

11,401,382

108

0.4%

0.4%

Other provisions

3,946,874

16,218,730

24

0.1%

0.5%

Deferred tax liabilities

30,752,195

18,465,042

167

0.9%

0.6%

Liabilities from financial contracts

0

0

0.0%

0.0%

Other financial liabilities

15,084,019

34,790,998

43

0.5%

1.1%

Operating liabilities

58,533,223

56,325,533

104

1.8%

1.8%

- liabilities from direct insurance operations

15,644,384

20,247,893

77

0.5%

0.7%

- liabilities from reinsurance and co-insurance operations

36,341,671

35,338,592

103

1.1%

1.1%

- current tax liabilities

6,547,168

739,048

886

0.2%

0.0%

Other liabilities

65,641,718

59,598,649

110

2.0%

1.9%

Liabilities arising from long-term assets held for sale

39,343,031

92,035

1.2%

0.0%

Financial position indicators

Financial position indicators

Financial position indicators

2014

2013

2012

The portion of equity in total liabilities

21.0%

19.2%

18.4%

Average equity balance as % of gross written premiums

64.7%

64.7%

56.8%

Return on equity

13.4%

12.0%

13.8%

Share of gross insurance technical provisions in total liabilities

71.2%

73.5%

73.8%

Average balance of gross insurance technical provisions as % of gross written premiums